TC Energy Completes $1.14 Billion Sale of Portland Natural Gas Transmission System

(P&GJ) — TC Energy Corp. has completed the sale of its Portland Natural Gas Transmission System (PNGTS) for $1.14 billion, in partnership with Northern New England Investment Company, Inc., a subsidiary of Énergir L.P.

PNGTS is a 475-kilometer (295-mile) FERC-regulated transporter of natural gas serving the upper New England and Atlantic Canada markets. The pipeline receives natural gas from the Trans Quebec and Maritimes (TQM) pipeline via the Canadian Mainline.

The sale price includes $250 million in outstanding senior notes held by PNGTS, which were assumed by the buyers.

“Completing this transaction demonstrates continued progress towards delivering on $3 billion in asset divestitures and enhancing our balance sheet strength,” François Poirier, TC Energy’s president and CEO, said. “We remain focused on reaching our 4.75 times debt-to-EBITDA upper limit by year-end, and today’s announcement takes us one step closer to achieving this goal.”

Proceeds from the sale will be divided based on previous ownership stakes, with TC Energy holding 61.7% and Énergir 38.3%. TC Energy will continue to provide transition services to ensure a smooth handover of the natural gas system.

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